Electricity consumers in Pakistan could face an additional Rs. 32.7 billion in November bills as the Power Division has projected a fuel price adjustment (FCA) of Rs. 2.56 per unit for electricity used in September 2026.
The proposed adjustment is Rs. 1.45 per unit above August’s FCA of Rs. 1.11. The Power Division said measures taken to manage electricity demand helped keep the projected increase below the Rs. 3.44 per unit it could otherwise have reached.
According to the division, targeted load management lasting around two to two-and-a-half hours daily in September reduced dependence on costly fuels such as furnace oil and high-speed diesel. It also said supplying imported re-gasified liquefied natural gas (RLNG) to power plants at domestic gas rates lowered the expected adjustment by a further 83 paisa per unit.
The division linked the higher generation costs to rising global fuel prices and limited LNG supplies. It said Brent crude had climbed above $120 per barrel amid regional tensions and supply chain disruptions following the closure of the Strait of Hormuz. The base electricity tariff, meanwhile, was calculated using a benchmark oil price of around $70 per barrel.
Pakistan continued working to secure RLNG supplies despite Qatar’s declaration of force majeure, the Power Division said. Efforts included using available contracted supplies and arranging additional spot cargoes where required.
The division also said the combined effect of fuel price and quarterly tariff adjustments from January through August had been limited to 65 paisa per unit, or 1.9 percent of the base electricity tariff. It attributed this outcome partly to tariff rationalization and an additional electricity consumption package for industrial and agricultural users.
Industrial consumers have questioned the package’s effectiveness. They argue that the marginal rate of Rs. 22.96 per unit applies to a limited number of consumers, while the actual marginal cost is around Rs. 34 per unit. According to their position, the difference of approximately Rs. 11 per unit is passed into the average tariff, adding pressure on consumers more broadly.
The National Electric Power Regulatory Authority (NEPRA) held a public hearing last week to consider industrial consumers’ requests to revise or suspend the incremental consumption package. A final decision has not yet been announced.
The Power Division said it would continue tracking international fuel markets and supply conditions and take steps to reduce the impact of external price increases on electricity consumers.
